President William Ruto's Affordable Housing Programme is facing another legal challenge after six Kenyans moved to the Supreme Court seeking to stop the mandatory 1.5 per cent Housing Levy deductions from workers' salaries.
The petitioners, led by Busia Senator Okiya Omtatah, want the country's highest court to overturn earlier decisions by the High Court and Court of Appeal that upheld the Affordable Housing Act, 2024.
In their appeal filed on Monday, November 9, 2026, the petitioners are seeking declarations that Sections 4 and 5 of the Act, which provide for the collection of the levy, are unconstitutional and invalid.
ALSO READ
They also want the Supreme Court to prohibit the Kenya Revenue Authority (KRA) from collecting the deductions and order the government to refund money already collected from employees.
The petitioners argue that compelling workers to contribute towards a housing programme without guaranteeing that they will benefit from the completed houses violates their constitutional rights, particularly the right to property.
They maintain that taxation measures should be fair, equitable and progressive, and should not place a disproportionate burden on low-income earners and marginalised groups.
In their court filing, the petitioners asked for an order prohibiting the respondents from charging, levying or collecting the Affordable Housing Levy under the contested provisions of the law.
Public land and participation questioned
Beyond the salary deductions, the petitioners have raised concerns about the government's use of public and community land for affordable housing developments whose completed units are eventually sold to private individuals.
They argue that the programme raises constitutional questions about the management of public resources, property rights and how the benefits of the housing projects are distributed.
The appeal also challenges the public participation process that preceded the enactment of the Affordable Housing Act.
The petitioners contend that the views of Kenyans were not adequately considered before the legislation was passed.
Court of Appeal had upheld the housing levy
The latest legal challenge follows a Court of Appeal judgment delivered on September 25, 2026, which upheld the Affordable Housing Act, 2024, and dismissed appeals challenging its constitutionality.
The appellate decision followed an earlier High Court ruling delivered on October 22, 2024, which dismissed consolidated petitions challenging the housing legislation.
The courts had upheld the legal framework allowing the government to collect the levy, with the Court of Appeal finding that the deductions did not amount to an unconstitutional violation of property rights.
The appellate court also upheld the role of the KRA Commissioner-General in collecting the levy.
However, the judges raised concerns about aspects of the programme's implementation, including the need for proper oversight and ensuring that vulnerable groups are not excluded from access to affordable housing.
The new appeal gives the Supreme Court an opportunity to consider the petitioners' latest challenge to the law and the earlier court decisions.
For now, the filing of the appeal does not automatically suspend the deductions. The 1.5 per cent Housing Levy therefore remains in force unless the Supreme Court issues orders directing otherwise.
The case places the government's flagship housing programme back under judicial scrutiny as debate continues over the constitutionality, fairness and implementation of the levy.